Carrots for Buyers

The City of Chicago has teamed up with some select developers to offer large incentives on over 200 homes in 22 neighborhoods. The incentives can total as much as $60,000 to $80,000. The program is called Find Your Place In Chicago and it’s well worth a look.

There are some incentives that are available on every home in the program:

• Some, but not all lenders will provide a Mortgage Credit Certificate. Depending on eligibility, it gives up to a $2000 federal income tax credit for the life of the mortgage.
• Some lenders involved in the program are offering special deals on mortgages: fixed-rate mortgages with only 3% down as well as grants to help with closing costs and fees.
• Down-payment grants and forgivable loans are being offered by some public and private employers toward the purchase of these homes.
• Between April 9, 2008 and June 30, 2009, the federal government is offering a $7,500 credit to everyone who purchases a home.
• Developers involved in the project are offering a lot of free incentives: free parking, free upgrades, etc.

Some of the homes have much larger incentives available:

• The Partnership for New Communities is providing $10,000 to the first 100 buyers on some of the homes that are priced under $450,000.
• Depending on your household income, you may be eligible for up to $30,000 in purchase-price assistance  from the Chciago Partnership for Affordable Neighborhoods (CPAN).
• New Homes for Chicago is offering up to $40,000 in purchase-price assistance on certain homes to buyers who qualify.